Self-Service Kiosks
Practice this advanced profitability case interview question in the Retail/Technology sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This case requires candidates to synthesize multiple data sources (customer survey, financial exhibits) to calculate the payback period. The key is identifying both revenue uplift from reduced customer defection (7% growth) and labor cost savings (2% reduction), then determining the net annual benefit per restaurant against the total investment of $40k (4 kiosks × $10k each). Candidates should also demonstrate critical thinking by questioning kiosk durability and lifetime value.
Estimated Time
35 minutes
Difficulty
Hard
Source
PeterK
10
/ 100
A regional fast-food chain has been struggling with long lines, which hurt customer experience, drive away customers, and decrease retention rates. They would like to introduce self-service kiosks to address the issue. What payback period should they expect from this investment?
Clarifying Information
- Each restaurant will need four self-service kiosks
- The kiosks will enable the client to reduce labor costs by 2%
- Exhibit 1. Customer Survey and Pilot Results, 2023
- Exhibit 2. Client’s Variable Costs as % of Total Revenue, 2021-23
- Each self-service kiosk requires an investment of $10k